Question

Suppose a hotel has annual fixed costs applicable to its rooms of $2,000,000 for its 300-room...

Suppose a hotel has annual fixed costs applicable to its rooms of $2,000,000 for its 300-room hotel. Average daily room rents are $50 per room and average variable costs are $10 for each room rented. It operates 365 days per year. If the hotel is completely full throughout the year, what is the operating income for one year?

a. 1,280,000

b 2,380,000

c. 4,380,000

d. 3,180,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
a. The Troy Co. has the following information available: Total fixed costs $400,000 Expected sales (units)...
a. The Troy Co. has the following information available: Total fixed costs $400,000 Expected sales (units) 100,000 Selling price per unit $10.00 Contribution margin per unit $7.50 Tax rate 30% What is the after-tax net income? Question 1 options: $350,000 $280,000 $420,000 $400,000 b. Suppose a hotel has annual fixed costs applicable to its rooms of $2,000,000 for its 300-room hotel. Average daily room rents are $50 per room and average variable costs are $10 for each room rented. It...
A 400 room hotel can rent every one of its rooms at $70 per room. For...
A 400 room hotel can rent every one of its rooms at $70 per room. For each $1 increase in rent, 5 fewer rooms are rented. Each rented room costs the hotel $10 to service per day. How much should the hotel charge for each room to maximize its daily profit? What is the maximum daily profit?
A 400​-room hotel can rent every one of its rooms at $100 per room. For each​...
A 400​-room hotel can rent every one of its rooms at $100 per room. For each​ $2 increase in​ rent, 4 fewer rooms are rented. Each rented room costs the hotel​ $12 to service per day. How much should the hotel charge for each room to maximize its daily​ profit? What is the maximum daily​ profit?
600​-room hotel can rent every one of its rooms at ​$80 per room. For each​ $1...
600​-room hotel can rent every one of its rooms at ​$80 per room. For each​ $1 increase in​ rent, 6 fewer rooms are rented. Each rented room costs the hotel​ $10 to service per day. How much should the hotel charge for each room to maximize its daily​ profit? What is the maximum daily​ profit?
Assume that Mantine Hotel has 200 rooms with 80% occupancy on daily basis. The ADR of...
Assume that Mantine Hotel has 200 rooms with 80% occupancy on daily basis. The ADR of this hotel is $70.00 and it operates every day in a certain year. Also, this hotel has $2 million annual F&B revenue. On daily basis, the total number of guests stayed at Mantine is 80. Based on the information given, calculate the revenue per available customer (assume that total number of guests stay constant through the year and there are 365 days in a...
Assume that Mantine Hotel has 200 rooms with 80% occupancy on daily basis. The ADR of...
Assume that Mantine Hotel has 200 rooms with 80% occupancy on daily basis. The ADR of this hotel is $70.00 and it operates every day in a certain year. Also, this hotel has $2 million annual F&B revenue. On daily basis, the total number of guests stayed at Mantine is 80. Based on the information given, calculate the revenue per available customer (assume that total number of guests stay constant through the year and there are 365 days in a...
9. Application: Elasticity and hotel rooms The following graph input tool shows the daily demand for...
9. Application: Elasticity and hotel rooms The following graph input tool shows the daily demand for hotel rooms at the Big Winner Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial...
8. Application: Elasticity and hotel rooms The following graph input tool shows the daily demand for...
8. Application: Elasticity and hotel rooms The following graph input tool shows the daily demand for hotel rooms at the Triple Sevens Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial...
ABC hotel has 200 rooms and has a policy to determine its room rates based on...
ABC hotel has 200 rooms and has a policy to determine its room rates based on consumers capacity to pay. For example busniess clients pay $1,200 per night and group tours $900 per night. The incremental cost of servicing a room is worked out at $110 per room. On average, most guest stay for three (3) nights. Rooms division manager is trying to establish if four (4) week advance reservation should be taken for a group booking of 40 rooms...
The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that...
The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows. Salaries $8,750 per month Utilities 2,700 per month Depreciation 1,200 per month Maintenance 850 per month Maid service 8 per room Other costs 34 per room Determine the inn’s break-even point in (1) number of rented rooms per month and (2) dollars. 1. Break-even point in rooms 2. Break-even point $ If the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT